The Reserve Bank of India (RBI) is the central bank

Central bank

A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...

ing institution of India

India

India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

 and controls the monetary policy of the rupee

Indian rupee

The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....

 as well as US$300.21 billion (2010) of currency reserves. The institution was established on 1 April 1935 during the British Raj

British Raj

British Raj was the British rule in the Indian subcontinent between 1858 and 1947; The term can also refer to the period of dominion...

 in accordance with the provisions of the Reserve Bank of India Act, 1934. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the beginning.